American Eagle Outfitters (NYSE: AEO) CEO Jay Schottenstein voiced Thursday that he expects the U.S. shopping mall business to boom post-pandemic. The company announced Wednesday that revenue is expected to exceed USD1 Billion, though it did not provide a fresh earnings estimate.
“We’re very excited, you know, about the future of the mall,” he said in a conversation with Jim Cramer on “Mad Money,” “and we think that when things get better and the pandemic goes away … we can be looking at the ‘Roaring 20s’.”
Similar to some other industry leaders, Schottenstein anticipates that we will experience the same growth that occurred a century ago. Consumer spending increased 10% in March, partly due to the most recent stimulus check, a hopeful sign for many that the economy is recovering.
“The sales we’re doing, like this quarter, … all the stores are comping and we’re doing it at a 50% capacity,” Schottenstein said.
According to Schottenstein, the company’s denim business is a strong force and customers have started shopping for more tops as well.
“There’s a lot of money out there,” he said. “We think the environment for the next few years, it’s going to be a very good environment. … People will want to spend [and] people are going to want to go out and they’re going to want to get back to what was normal before.”
American Eagle’s stock has surged 29% since March 24.